Help re PPI on loan currently in arrears please

lonely2

Hi. Wondering if anyone can help.

In 2006 I took out a loan Northern Rock and they advised me at the time that taking the PPI would increase my chances of the loan request being accepted so I took it even though my job pays 6 months full then 6 months half pay and has a "no redundancies" policy.

I am now on a Debt Management Plan and Northern Rock have been one of the easier ones to deal with - accepting my reduced payments and not giving me too much hassle.

The only thing is, before I started my DMP I asked for a settlement figure and then when I started making the reduced payments they frontloaded all the interest AND PPI which increased the outstanding balance by over £5,000.

My questions are:

1) Do you think I was mis-sold the PPI in the first place
2) Can they really add all the PPI to the outstanding balance even though
by defaulting on my loan it would not pay out anyway
3) If eligible, is it worth trying to reclaim or will I just upset them and make
them more difficult to deal with re my DMP - I'm scared in case they
get tough and put a charging order on my house or something

Any help appreciated

Thanks

di3004

lonely2 wrote: »

Hi. Wondering if anyone can help.

In 2006 I took out a loan Northern Rock and they advised me at the time that taking the PPI would increase my chances of the loan request being accepted so I took it even though my job pays 6 months full then 6 months half pay and has a "no redundancies" policy.

I am now on a Debt Management Plan and Northern Rock have been one of the easier ones to deal with - accepting my reduced payments and not giving me too much hassle.

The only thing is, before I started my DMP I asked for a settlement figure and then when I started making the reduced payments they frontloaded all the interest AND PPI which increased the outstanding balance by over £5,000.

My questions are:

1) Do you think I was mis-sold the PPI in the first place
2) Can they really add all the PPI to the outstanding balance even though
by defaulting on my loan it would not pay out anyway
3) If eligible, is it worth trying to reclaim or will I just upset them and make
them more difficult to deal with re my DMP - I'm scared in case they
get tough and put a charging order on my house or something

Any help appreciated

Thanks

Hi there hun
And sorry to hear of your issues here.

Do you think you could add this into the reclaiming/discussion thread where you would receive more replies, help and guidance through this ?

If you click on "loan" on the top of that page you will see a thread of that mentioned above.

Meanwhile if you were not aware of the ppi from the start then this was obviously mis sold to you.
If they did not explain the full cost of this and the interest which would cost an extortionate amount on top then yes it was mis sold.
There are lots more choices of reasons for mis selling.

I would try and reclaim on this hun, but first post on the thread mentioned above and you will get allsorts of guidance here.

I hope to see you there and all the best.

Di.
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